7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.206 — Special requirements for community land trusts
7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program, §3555.206 Special requirements for community land trusts. Captured section-complete (all subsections verbatim).
Verbatim regulatory text
Verbatim provisions from 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.206 — Special requirements for community land trusts — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
7 CFR §3555.206
A community land trust must meet the definition in accordance with § 3555.10 and other requirements described in this subpart. Loans may be guaranteed for dwellings on land owned by a community land trust only if:
7 CFR §3555.206(a)
(a) Rural Development review. Rural Development reviews and accepts any restrictions imposed by the community land trust on the property or applicant before loan closing. The Agency may place conditions on the approval of restrictions on resale price and rights of first refusal.
7 CFR §3555.206(b)
(b) Foreclosure termination. The community land trust automatically and permanently terminates upon foreclosure or acceptance by the lender of a deed in lieu of foreclosure.
7 CFR §3555.206(c)
(c) Organization. The organization must meet the definition of a community land trust as defined in the Housing Act of 1949 and the following requirements: (1) Be organized under State or local laws. (2) Members, founders, contributors or individuals cannot benefit from any part of net earnings of the organization. (3) The organization must be dedicated to decent affordable housing for low-and moderate-income people. (4) Comply with financial accountability.
7 CFR §3555.206(d)
(d) Lender documentation. The lender's file must contains documentation that the community land trust has community support, local market acceptance and 2 years of prior experience in providing affordable housing.
7 CFR §3555.206(e)
(e) Appraisals. A property located on a site owned by a community land trust must be appraised as leasehold interest and meet the provisions of § 3555.203.
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Source of record: https://claudeforcompliance.com/regs/usda-7cfr-3555-206/
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